- 4 -
Respondent has moved that Dr. Trowbridge be held in default
and that a decision be entered that there are deficiencies in tax
with respect to him for 1996 and 1997 in the amounts of $146,847
and $211,508,3 respectively, and that decisions be entered that
there are no deficiencies in tax with respect to Life Center and
Life Choices. Respondent has also moved for partial summary
judgment in his favor on the issues of (1) whether respondent is
barred by the statute of limitations on assessment with respect
to Dr. Trowbridge’s 1996 taxable year, (2) whether there is an
additional deficiency in tax with respect to Dr. Trowbridge for
1996 based on additional gross business receipts for that year,
and (3) whether Dr. Trowbridge is liable for additions to tax
under sections 6651(a)(1) and 6654. For the reasons that follow,
we shall grant respondent’s motion for default judgment and
sustain (with minor modifications as to amounts) the positions he
has taken in his motion for partial summary judgment. We shall
also impose a penalty on Dr. Trowbridge under section 6673(a)(1).
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years at issue, and
all Rule references are to the Tax Court Rules of Practice and
3 That amount is less than the deficiency in tax for 1997
determined by respondent in the notice of deficiency. In his
motion for default judgment, respondent attributes such downward
adjustment to the elimination of transfers among petitioners and
other duplicated items.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011